Trust Law Fundamentals and the Fiduciary Relationship
A trust is an equitable obligation binding a trustee to deal with property for the benefit of beneficiaries. The three certainties - intention, subject matter and objects - must all be present; a question that supplies a vague class of beneficiaries or an uncertain fund is testing certainty of objects or subject matter. Distinguish a trust from a power of appointment, a bare trust, an agency and a contractual arrangement: the defining feature is that legal title is separated from beneficial enjoyment and the trustee owes fiduciary duties.
The fiduciary relationship is the conceptual core. A fiduciary must act in the interests of the beneficiary, avoid unauthorised conflicts, and not make an unauthorised profit. The no-conflict and no-profit rules are strict but not absolute: the trust deed or informed consent of beneficiaries may permit otherwise. Traps include treating a fiduciary duty as a duty of care only (it is a duty of loyalty), and overlooking that a fiduciary can be liable even where they acted honestly, if they placed themselves in a conflict.
Remember also that the beneficiary's interest is proprietary: it can be assigned, and it binds third parties who receive trust property with notice. A resulting trust arises where beneficial ownership is not fully disposed of; a constructive trust is a remedy for unconscionable conduct.
Worked example: A trustee buys a property from the trust at an undervalue without disclosure. Even if the price was fair, the trustee has placed themselves in a position where their interest and duty conflict; the transaction is voidable unless the deed authorised it or fully informed beneficiaries consented. The trustee must account for any profit.